Analysts at CDA have heard questions from members about EFT enrollment and payments. Here are answers to those questions.
1. Are EFT payments secure?
Yes, the Centers for Medicaid Services finalized the HIPAA operating rules for EFT and remittance advice in January 2014 to increase EFT and ERA transactions and move away from paper payments for all healthcare providers. The federally mandated operating rules support a range of standards to make electronic data transactions more predictable, safe and consistent, regardless of the technology utilized.
2. Are EFT payments more secure than hard copy checks?
Yes, EFT payments are processed more securely and quickly than hard copy checks. Paper checks take longer to process and are more prone to mail loss, theft and altercations that could result in significant payment delays.
3. If I sign up for EFT payments, does the dental plan gain access to my bank account?
No, EFT transactions are securely routed through approved banking channels and support deposits only, protecting dentists from unauthorized withdrawals.
4. Are any fees associated with receiving EFT payments?
Although dental plans state that there are no fees for providing EFT payments, you should confirm with your bank that it is not charging for receipt of EFT payments.
5. How do I know whether a dental plan complies with the federal security requirements for handling my EFT transactions?
CDA encourages member-dentists to view the EFT information on the respective dental plan’s website and contact the dental plan directly with any questions about its security protocols for EFT payments.
6. What other safeguards can I put in place to ensure that my EFT deposits are safe?
Consider setting up a separate bank account for your EFT deposits only. Once those deposits are reconciled with the EOBs/ERAs, the funds may then be transferred to your designated business account.